The organic silicon industry in 2025 has ushered in a long-awaited "good start" in the dawn of the new year. Since January, the scale of pre-sale orders in the industry may have exceeded 100000 tons, indicating that marketing activities during this year's peak season will be more intense than ever before. Organosilicon practitioners are all working hard, hoping to lay a solid foundation for performance growth in the new year.
The phenomenon of spring restlessness is particularly evident in the silicone industry, with significant temporal characteristics. January is still in the brewing stage, while February has ushered in a better time window. Entering March, the market gradually showed signs of fatigue, but by this time, most companies had already achieved good performance through previous efforts.

Looking back at 2024, the silicone industry experienced an unprecedented 'price war'. However, in the new year, there are still strong expectations of a "price war" both inside and outside the industry. But industry dividends are still of paramount importance. With the steady recovery of the economy, the thinking of practitioners is gradually changing, no longer using cold winter thinking to judge industry trends. This change is not only reflected within the industry, but also affects downstream application layers.
In 2025, the downstream application layer is expected to usher in a situation where a hundred flowers bloom and a hundred schools of thought compete. Domestic brands continue to make efforts and compete fiercely with international brands such as Dow, Shinetsu, and Wacker. Among them, silicone leather has become a focus of attention. Major enterprises have come up with their own "expertise" in an attempt to occupy a place in this emerging market.
However, silicon industry insiders believe that the price war in 2024 has led to diminishing marginal utility, insufficient domestic demand, and increasing pressure on overseas markets. Therefore, the competition intensity in 2025 will be the "enhanced version" of 2024. To address this challenge, multiple companies in the industry have begun to seek the realization and implementation of their brand, technology, and value.
In the first week after the Spring Festival, the silicone industry experienced a spring frenzy. After 30 months of continuous losses, major single unit factories have launched a "maintenance combination punch" and launched a fierce counterattack. Since the resumption of work during the Spring Festival, major manufacturers in Shandong have sounded the horn of price increases, and the DMC benchmark price has risen strongly by 800 yuan, reaching the 13400 yuan/ton mark. Subsequently, the three major conglomerates suddenly closed down and reset their pricing system on Wednesday. On Thursday, the leading DMC in Xinjiang surged to 13800 yuan/ton in a single day, driving second tier manufacturers to collectively rise above 13500 yuan.
According to insiders, the entire industry has reached a strategic consensus to reshape the market landscape through an unprecedented joint production reduction of approximately 1.4 million tons. A staggered maintenance plan will be implemented in February and March, with an additional 20% reduction in production capacity based on the existing operating rate. The determination of this heroic figure to break his arm stems from 30 months of continuous losses, with an average loss of over 1500 yuan per ton for individual factories in 2024, and the industry losing over 10 billion yuan cumulatively.
Faced with the whirlwind of price increases, midstream and downstream enterprises are in a dilemma. Chasing price increases and stocking up may lead to price corrections, and waiting and watching may also result in missing the purchasing window. However, the strong signals released by the production side cannot be ignored. The raw material inventory of multiple individual factories has dropped to the 5-day warning line, and social inventory has sharply decreased by 42% year-on-year. Market analysts point out that this round of supply side reform in the industry will deeply rewrite the ecology of the silicone industry, and survivors are trying to rebuild their pricing discourse power.
In the DMC market, overall transactions are active, with mainstream market prices remaining stable at 13400-14000 yuan/ton. Although individual manufacturers have recently raised their factory quotes across the board, the slow recovery of terminal demand has not improved. After experiencing a sharp rise, there is currently no significant fluctuation in the market, and the quotes from industry leaders remain at the level of 13800 yuan/ton.
The 107 glue market is showing a regional price upward trend. The transaction price in the North China market increased by 300 yuan/ton, and both the East and South China markets achieved an increase of 500 yuan/ton. Affected by the continuous strengthening of raw material costs, coupled with favorable macroeconomic policies, the market supply and demand pattern presents a tight balance. The latest quotation from leading production enterprises has been pushed up to the benchmark line of 14100 yuan/ton, driving the mainstream market prices of various grades of products to generally adjust within the fluctuation range of 300-500 yuan/ton.
In terms of the silicone oil market, the current exchange rate of conventional silicone oil in the East China region remains in the range of 15300-16200 yuan/ton, and the variety of silicone oil for cracking materials shows a slight upward trend. The pressure of accumulated inventory in the industry continues to ease, coupled with the expectation of sufficient supply in the long term, forming a situation of mixed long and short positions. The listing price of 15300 yuan/ton from leading manufacturers has strengthened the market's bullish expectations, with mainstream brand prices generally showing a fluctuation range of 300-500 yuan per ton.
The raw rubber market maintains a stable to strong pattern, with mainstream brand prices increasing by 200-300 yuan/ton to the range of 14500-14800 yuan/ton compared to the previous period. Leading manufacturers opened high and rose to 14500 yuan/ton, boosting the trading atmosphere in the spot market. However, the resumption pace of downstream enterprises after the holiday is still unclear, and coupled with the lack of significant increase in new orders, market participants generally hold a cautious attitude.
Overall, the silicone industry has ushered in new opportunities and challenges in the new year. With the intensification of market competition, enterprises need to respond to market changes by enhancing their brand, technology, and value. And this round of price hikes is not only a deep rewriting of the industry ecology, but also a test of the strength and strategic vision of enterprises.